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22/4/2018 Marketing - Wikipedia

Marketing
Marketing is the study and management of exchange relationships.[1][2] Marketing is used to create, keep and satisfy the
customer. With the customer as the focus of its activities, it can be concluded that Marketing is one of the premier
components of Business Management - the other being Innovation.[3]

Contents
Definition
Concept
Orientations
Product
Sales
Production
Marketing
Societal marketing
The marketing mix (the 4 Ps)
Origins
Brief outline
Criticisms
Modifications and extensions
Environment
Macro
Micro
Internal
Research
Research process
Segmentation
Purposes
Overview
Segment
Target
Position

Communications
Personal sales
Sales promotion
Public relations
Publicity
Advertising
Mix
Planning
Process
Levels of marketing objectives within an organization
Corporate

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Strategic business unit


Functional

Product life cycle


Introduction
Growth
Maturity
Decline
Customer focus
Product focus
See also
Types of marketing
Marketing orientations or philosophies
References
Bibliography
External links

Definition
Marketing is defined by the American Marketing Association as "the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large."[4] The term developed from the original meaning which referred literally to going to market with goods
for sale. From a sales process engineering perspective, marketing is "a set of processes that are interconnected and
interdependent with other functions" of a business aimed at achieving customer interest and satisfaction.[5]

Philip kotler defines marketing as :-marketing is about Satisfying needs and wants through an exchange process.

The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying,
anticipating and satisfying customer requirements profitably."[6] A similar concept is the value-based marketing which
states the role of marketing to contribute to increasing shareholder value.[7] In this context, marketing can be defined as
"the management process that seeks to maximise returns to shareholders by developing relationships with valued
customers and creating a competitive advantage."[7]

Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and
selling. However, because the academic study of marketing makes extensive use of social sciences, psychology, sociology,
mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a science,[8]allowing
numerous universities to offer Master-of-Science (MSc) programs.[9]

The process of marketing is that of bringing a product to market in which includes these steps: broad market research;
market targeting and market segmentation; determining distribution, pricing and promotion strategies; developing a
communications strategy; budgeting; and visioning long-term market development goals.[10] Many parts of the marketing
process (e.g. product design, art director, brand management, advertising, copywriting etc.) involve use of the creative
arts.

Concept

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The 'marketing concept' proposes that in order to satisfy the organizational objectives, an organization should anticipate
the needs and wants of consumers and satisfy these more effectively than competitors. This concept originated from Adam
Smith's book The Wealth of Nations, but would not become widely used until nearly 200 years later.[11] Marketing and
Marketing Concepts are directly related.

Given the centrality of customer needs and wants in marketing, a rich understanding of these concepts is essential:[12]

Needs: Something necessary for people to live a healthy, stable and safe life. When needs
remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be
objective and physical, such as the need for food, water and shelter; or subjective and
psychological, such as the need to belong to a family or social group and the need for self-
esteem.
Wants: Something that is desired, wished for or aspired to. Wants are not essential for basic
survival and are often shaped by culture or peer-groups.
Demands: When needs and wants are backed by the ability to pay, they have the potential to
become economic demands.

Marketing research, conducted for the purpose of new product development or product improvement, is often concerned
with identifying the consumer's unmet needs. [13] Customer needs are central to market segmentation which is concerned
with dividing markets into distinct groups of buyers on the basis of "distinct needs, characteristics, or behaviors who
might require separate products or marketing mixes." [14] Needs-based segmentation (also known as benefit
segmentation) "places the customers' desires at the forefront of how a company designs and markets products or
services." [15] Although needs-based segmentation is difficult to do in practice, has been proved to be one of the most
effective ways to segment a market. [16] In addition, a great deal of advertising and promotion is designed to show how a
given product's benefits meet the customer's needs, wants or expectations in a unique way.[17]

Orientations
A marketing orientation has been defined as a "philosophy of business management." [18] or "a corporate state of mind"
[19] or as an "organisation[al] culture" [20] Although scholars continue to debate the precise nature of specific orientations
that inform marketing practice, the most commonly cited orientations are as follows: [21]

Product
A firm employing a product orientation is mainly concerned with the quality of its own product. A product orientation is
based on the assumption that, all things being equal, consumers will purchase products of a superior quality. The
approach is most effective when the firm has deep insights into customers and their needs and desires derived from
research or intuition and understands consumers' quality expectations and reservation prices. For example, Sony
Walkman and Apple iPod were innovative product designs that addressed consumers' unmet needs. Although the product
orientation has largely been supplanted by the marketing orientation, firms practising a product orientation can still be
found in haute couture and in arts marketing. [22]

Sales
A firm using a sales orientation focuses primarily on the selling/promotion of the firm's existing products, rather than
determining new or unmet consumer needs or desires. Consequently, this entails simply selling existing products, using
promotion and direct sales techniques to attain the highest sales possible.[23] The sales orientation "is typically practised

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with unsought goods." [24] One study found that industrial companies are more likely to hold a sales orientation than
consumer goods companies. [25] The approach may also suit scenarios in which a firm holds dead stock, or otherwise sells
a product that is in high demand, with little likelihood of changes in consumer tastes diminishing demand.

Production
A firm focusing on a production orientation specializes in producing as much as possible of a given product or service in
order to achieve economies of scale or economies of scope. A production orientation may be deployed when a high
demand for a product or service exists, coupled with certainty that consumer tastes and preferences remain relatively
constant (similar to the sales orientation). The so-called production era is thought to have dominated marketing practice
from the 1860s to the 1930s, but other theorists argue that evidence of the production orientation can still be found in
some companies or industries. Specifically Kotler and Armstrong note that the production philosophy is "one of the oldest
philosophies that guides sellers... [and] is still useful in some situations." [26]

Marketing
The marketing orientation is perhaps the most common orientation used in contemporary marketing. It is a customer-
centric approach that involves a firm basing its marketing program around products that suit new consumer tastes. Firms
adopting a marketing orientation typically engage in extensive market research to gauge consumer desires, use R&D to
develop a product attuned to the revealed information, and then utilize promotion techniques to ensure consumers are
aware of the product's existence and the benefits it can deliver. [27] Scales designed to measure a firm's overall market
orientation have been developed and found to be relatively robust in a variety of contexts. [28]

The marketing orientation often has three prime facets, which are:

Customer orientation: A firm in the market economy can survive by producing goods that
persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a
firm's future viability and even existence as a going concern.
Organizational orientation: In this sense, a firm's marketing department is often seen as of prime
importance within the functional level of an organization. Information from an organization's
marketing department would be used to guide the actions of other department's within the firm.
As an example, a marketing department could ascertain (via marketing research) that
consumers desired a new type of product, or a new usage for an existing product. With this in
mind, the marketing department would inform the R&D department to create a prototype of a
product/service based on consumers' new desires.

The production department would then start to manufacture the product, while the marketing
department would focus on the promotion, distribution, pricing, etc. of the product. Additionally,
a firm's finance department would be consulted, with respect to securing appropriate funding for
the development, production and promotion of the product. Inter-departmental conflicts may
occur, should a firm adhere to the marketing orientation. Production may oppose the installation,
support and servicing of new capital stock, which may be needed to manufacture a new
product. Finance may oppose the required capital expenditure, since it could undermine a
healthy cash flow for the organization.

Mutually beneficial exchange: In a transaction in the market economy, a firm gains revenue,
which thus leads to more profits/market share/sales. A consumer on the other hand gains the
satisfaction of a need/want, utility, reliability and value for money from the purchase of a product
or service. As no-one has to buy goods from any one supplier in the market economy, firms
must entice consumers to buy goods with contemporary marketing ideals.

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Societal marketing
A number of scholars and practitioners have argued that marketers have a greater social responsibility than simply
satisfying customers and providing them with superior value. Instead, marketing activities should strive to benefit
society's overall well-being. Marketing organisations that have embraced the societal marketing concept typically identify
key stakeholder groups such as employees, customers, and local communities. They should consider the impact of their
activities on all stakeholders. Companies that adopt a societal marketing perspective typically practice triple bottom line
reporting whereby they publish social impact and environmental impact reports alongside financial performance reports.
Sustainable marketing or green marketing is an extension of societal marketing. [29]

The marketing mix (the 4 Ps)


The four Ps, often referred to as the marketing mix or the marketing program,[30] represent the basic tools which
marketers can use to bring their products or services to market. They are the foundation of managerial marketing and the
marketing plan typically devotes a section to each of these Ps.

Origins
During the 1940s, the discipline of marketing was in transition. Interest in the functional school of thought, which was
primarily concerned with mapping the functions of marketing was waning while the managerial school of thought, which
focussed on the problems and challenges confronting marketers was gaining ground. [31] The concept of marketers as
"mixers of ingredients," was first introduced by James Culliton, a Professor at Harvard Business School. [32] At this time
theorists began to develop checklists of the elements that made up the marketing mix, however, there was little agreement
as to what should be included in the list. Many scholars and practitioners relied on lengthy classifications of factors that
needed to be considered to understand consumer responses.[33] Neil Borden developed a complicated model in the late
1940s, based upon at least twelve different factors.[34]

Inspired by the idea of marketers as mixers of ingredients, Neil Borden one of


Culliton's colleagues at Harvard, coined the phrase the marketing mix and
used it wherever possible. According to Borden's own account, he used the
term, 'marketing mix' consistently from the late 1940s. [35] For instance, he is
on record as having used the term, 'marketing mix,' in his presidential address
given to the American Marketing Association in 1953. [36] In the mid-1960s,
Borden published a retrospective article detailing the early history of the
marketing mix in which he claims that he was inspired by Culliton's idea of The original marketing mix or the
4Ps
'mixers', and credits himself with coining the term, 'marketing mix'.[37]
Borden's continued and consistent use of the phrase, "marketing mix,"
contributed to the process of popularising the concept throughout the 1940s and 50s.

The "marketing mix" gained widespread acceptance with the publication, in 1960, of E. Jerome McCarthy's text, Basic
Marketing: A Managerial Approach which outlined the ingredients in the mix as the memorable 4 Ps, namely product,
price, place and promotion. [38] The marketing mix is based upon four controllable variables that a company manages in
its effort to satisfy the corporation's objectives as well as the needs and wants of a target market.[34] Once there is
understanding of the target market's interests, marketers develop tactics, using the 4Ps, to encourage buyers to purchase
product. The successful use of the model is predicated upon the degree to which the target market's needs and wants have
been understood, and the extent to which marketers have developed and correctly deployed the tactics. Today, the
marketing mix or marketing program is understood to refer to the "set of marketing tools that the firm uses to pursue its
marketing objectives in the target market".[39]
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Brief outline
The traditional marketing mix refers to four broad levels of marketing decision, namely: product, price, promotion, and
place.[40][41]

Product
The product aspects of marketing deal with the specifications of the actual goods or services,
and how it relates to the end-user's needs and wants. The product element consists of product
design, new product innovation, branding, packaging, labelling. The scope of a product
generally includes supporting elements such as warranties, guarantees, and support. Branding,
a key aspect of the product management, refers to the various methods of communicating a
brand identity for the product, brand, or company.
Pricing
This refers to the process of setting a price for a product, including discounts. The price need
not be monetary; it can simply be what is exchanged for the product or services, e.g. time,
energy, or attention or any sacrifices consumers make in order to acquire a product or service.
The price is the cost that a consumer pays for a product--monetary or not. Methods of setting
prices are in the domain of pricing science.
Place (or distribution)
This refers to how the product gets to the customer; the distribution channels and intermediaries
such as wholesalers and retailers who enable customers to access products or services in a
convenient manner. This third P has also sometimes been called Place, referring to the channel
by which a product or service is sold (e.g. online vs. retail), which geographic region or industry,
to which segment (young adults, families, business people), etc. also referring to how the
environment in which the product is sold in can affect sales.
Promotion
This includes all aspects of marketing communications; advertising, sales promotion, including
promotional education, public relations, personal selling, product placement, branded
entertainment, event marketing, trade shows and exhibitions.

Criticisms
Morgan, in Riding the Waves of Change (Jossey-Bass, 1988), suggests that one of the greatest limitations of the 4 Ps
approach "is that it unconsciously emphasizes the inside–out view (looking from the company outwards), whereas the
essence of marketing should be the outside–in approach". An inside-out approach is the traditional planning approach
where the organisation identifies its desired goals and objectives which are often based around what has always been
done. Marketing's task then becomes one of "selling" the organisation's products and messages to the "outside" or external
stakeholders.[42] In contrast, an outside-in approach first seeks to understand the needs and wants of the consumer. [43]

From a model-building perspective, the 4 Ps has attracted a number of criticisms. Well-designed models should exhibit
clearly defined categories that are mutually exclusive, with no overlap. Yet, the 4 Ps model has extensive overlapping
problems. Some of the Ps are only defined in vague terms. Several authors stress the hybrid nature of the fourth P,
mentioning the presence of two important dimensions, "communication" (general and informative communications such
as public relations and corporate communications) and "promotion" (persuasive communications such as advertising and
direct selling). Certain marketing activities, such as personal selling, may be classified as either promotion or as part of the
place (i.e. distribution) element. [44] Some pricing tactics such as promotional pricing can be classified as price variables or
promotional variables and therefore also exhibit some overlap.

Other important criticisms include that the marketing mix lacks a strategic framework and is therefore unfit to be a
planning instrument, particularly when uncontrollable, external elements are an important aspect of the marketing
environment. [45]

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Modifications and extensions


To overcome the deficiencies of the 4 P model, some authors have suggested
extensions or modifications to the original model. Extensions of the four P's
include "people", "process", and "physical evidence" and are often applied in
the case of services marketing[46] Other extensions have been found necessary
in retail marketing, industrial marketing and internet marketing:
Expanded marketing mix for
Industrial or B2B marketing needs to account for the long term services
contractual agreements that are typical in supply chain
transactions. Relationship marketing attempts to do this by looking
at marketing from a long term relationship perspective rather than individual transactions.[47]
Services marketing needs to account for the unique characteristics of services (i.e. intangibility, perishability,
heterogeneity and the inseparability of production and consumption). In order to recognize the special
challenges involved in selling services, as opposed to goods, some authors advocate extending the model to 7
Ps for service industries by adding; Process - the way in which orders are handled, customers are satisfied
and the service is delivered; Physical Evidence - is tangible evidence with which customers interact and with
the potential to impact on the customer's service experience; People -service personnel and other customers
with whom customers interact and form part of the overall service experience. [48]

Retail marketing needs to account for the unique facets of retail


stores. A number of authors have argued for the inclusion of two
new Ps, namely, Personnel and Presentation since these
contribute to the customer's unique retail experience and are the
principal basis for retail differentiation. Some scholars also
recommend adding Retail Format (i.e. retail formula) since it
contributes to customer expectations. [49] The modified retail
marketing mix is often called the 6 Ps of retailing. [50][51]
Internet marketing presents both marketing practitioners and
scholars with special challenges including: customer
empowerment, new communication modes, real-time interactivity, Expanded marketing mix for retail
access to global markets, high levels of market transparency and
difficulty maintaining competitive advantages. While some scholars
argue for an expanded marketing mix for internet marketing, most
argue that entirely new models are required. [52]
Some authors cite a further P - Packaging - this is thought by many to be part of Product, but in certain
markets (Japan, China for example) and with certain products (perfume, cosmetics) the packaging of a product
has a greater importance - maybe even than the product itself.

Environment
The term "marketing environment" relates to all of the factors (whether internal, external, direct or indirect) that affect a
firm's marketing decision-making/planning. A firm's marketing environment consists of three main areas, which are:

The macro-environment, over which a firm holds little control


The micro-environment, over which a firm holds a greater amount (though not necessarily total) control
The internal environment, which includes the factors inside of the company itself [53]

Macro
A firm's marketing macro-environment consists of a variety of external factors that manifest on a large (or macro) scale.
These are typically economic, social, political or technological phenomena. A common method of assessing a firm's macro-
environment is via a PESTLE (Political, Economic, Social, Technological, Legal, Ecological) analysis. Within a PESTLE

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analysis, a firm would analyze national political issues, culture and climate, key macroeconomic conditions, health and
indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of
technology's impact on its society and the business processes within the society.

Micro
A firm's micro-environment comprises factors pertinent to the firm itself, or stakeholders closely connected with the firm
or company.

A firm's micro-environment typically spans:

Customers/consumers
Employees
Suppliers
The Media
By contrast to the macro-environment, an organization holds a greater degree of control over these factors.

Internal
A firms internal environment consists of factors inside of the actual company. These are factors controlled by the firm and
they affect the relationship that a firm has with its customers. These include factors such as:

Labor
Inventory
Company Policy
Logistics
Budget
Capital Assets

Research
Marketing research is a systematic process of analyzing data which involves conducting research to support marketing
activities, and the statistical interpretation of data into information. This information is then used by managers to plan
marketing activities, gauge the nature of a firm's marketing environment and to attain information from suppliers.

A distinction should be made between marketing research and market research. Market research pertains to research
in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable market
segment. In contrast, marketing research relates to all research conducted within marketing. Market research is a subset
of marketing research.

Marketing researchers use statistical methods (such as quantitative research, qualitative research, hypothesis tests, Chi-
square tests, linear regression, correlation coefficients, frequency distributions, Poisson and binomial distributions, etc.)
to interpret their findings and convert data into information.[54]

Research process
Marketing research spans a number of stages,[55] including:

Define the problem


Develop a research plan
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Collect the data


Interpret data into information
Disseminate information formally in the form of a report

Segmentation
Market segmentation consists of taking the total heterogeneous market for a product and dividing it into several sub-
markets or segments, each of which tends to be homogeneous in all significant aspects.[56]

Purposes
Market segmentation is conducted for two main purposes, including:

A better allocation of a firm's finite resources


To better serve the more diversified tastes of contemporary consumers
A firm only possesses a certain amount of resources. Accordingly, it must make choices (and appreciate the related costs)
in servicing specific groups of consumers.

Moreover, with more diversity in the tastes of modern consumers, firms are noting the benefit of servicing a multiplicity of
new markets.

Overview
The steps of segmentation are Segment, Target, Position (abbreviated STP).

Segment
Segmentation involves the initial splitting up of consumers into persons of like needs/wants/tastes.

Four commonly used criteria are used for segmentation, which include:

Geographical (a country, region, city, town, etc.)


Psychographic (e.g. personality traits or lifestyle traits which influence consumer behaviour)
Demographic (e.g. age, gender, socio-economic class, education, etc.)
Behavioural (e.g. brand loyalty, usage rate, etc.)

Target
Once a segment has been identified, a firm must ascertain whether the segment is beneficial for them to service.

The DAMP acronym (meaning Discernable, Accessible, Measurable and Profitable) are used as criteria to gauge the
viability of a target market. The elements of DAMP are:

Discernable - how a segment can be differentiated from other segments.


Accessible - how a segment can be accessed via Marketing Communications produced by a firm
Measurable - can the segment be quantified and its size determined?
Profitable - can a sufficient return on investment be attained from a segment's servicing?
The next step in the targeting process is the level of differentiation involved in a segment serving. Three modes of
differentiation exist, which are commonly applied by firms. These are:

Undifferentiated - where a company produces a like product for all of a market segment
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Differentiated - in which a firm produced slight modifications of a product within a segment


Niche - in which an organisation forges a product to satisfy a specialised target market

Position
Positioning concerns how to position a product in the minds of consumers and inform what attributes differentiate it from
the competitor's products.

A firm often performs this by producing a perceptual map, which denotes similar products produced in the same industry
according to how consumers perceive their price and quality. From a product's placing on the map, a firm would tailor its
marketing communications to suit meld with the product's perception among consumers, and its position among
competitors' offering.

Communications
Marketing communications is an audience-centered activity designed to engage audiences and promote responses. It is
defined by actions a firm takes to communicate with end-users, consumers, and external parties.

Marketing communications encompass four distinct subsets, which are:

Personal sales
Oral presentation given by a salesperson who approaches individuals or a
group of potential customers:

Live, interactive relationship


Personal interest
Attention and response
Interesting presentation
Clear and thorough.

Sales promotion
Short-term incentives to encourage buying of products:

Instant appeal
Anxiety to sell
An example is coupons or a sale. People are given an incentive to buy, but this
does not build customer loyalty or encourage future repeat buys. A major
drawback of sales promotion is that it is easily copied by competition. It cannot
be used as a sustainable source of differentiation. Female beer sellers warn the
photographer that he also has to
buy some, Tireli market, Mali 1989
Public relations
Public relations (or PR, as an acronym) is the use of media tools by a firm in order to promote goodwill from an
organization to a target market segment, or other consumers of a firm's good/service. PR stems from the fact that a firm
cannot seek to antagonize or inflame its market base, due to incurring a lessened demand for its good/service.
Organizations undertake PR in order to assure consumers, and to forestall negative perceptions towards it.

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PR can span:

Interviews
Speeches/Presentations
Corporate literature, such as financial statements, brochures, etc.

Publicity
Publicity involves attaining space in media, without having to pay directly for such coverage. As an example, an
organization may have the launch of a new product covered by a newspaper or TV news segment. This benefits the firm in
question since it is making consumers aware of its product, without necessarily paying a newspaper or television station to
cover the event.

Advertising
Advertising occurs when a firm directly pays a media channel to publicize its product. Common examples of this include
TV and radio adverts, billboards, branding, sponsorship, etc.

Mix
Marketing communications mix is used to reach, engage, provoke audience-centered conversations. It consists of 5 tools,
which are 1)Advertising, 2)Sales & Promotion, 3)Public Relations, 4)Direct Marketing and 5)Personal Selling. The types of
messages that are enhanced can be 1)Informational, 2)Emotional, 3)User-generated, or/and 4)Brand content. The last
main component of MC mix is Media, which corresponds to the channel used to send the message. Media is divided into 3
categories, and these are media by 1)Form, 2)Source and 3)Functionality.

Planning
The area of marketing planning involves forging a plan for a firm's marketing activities. A marketing plan can also pertain
to a specific product, as well as to an organisation's overall marketing strategy.

Generally speaking, an organisation's marketing planning process is derived from its overall business strategy. Thus, when
top management are devising the firm's strategic direction/mission, the intended marketing activities are incorporated
into this plan.

Process
Within the overall strategic marketing plan, the stages of the process are listed as thus:

Mission Statement
Corporate Objectives
Marketing Audit
SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
Assumptions arising from the Audit and SWOT analysis
Marketing objectives derived from the assumptions
An estimation of the expected results of the objectives
Identification of alternative plans/mixes
Budgeting for the marketing plan
A first-year implementation program.

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Levels of marketing objectives within an organization


As stated previously, the senior management of a firm would formulate a general business strategy for a firm. However,
this general business strategy would be interpreted and implemented in different contexts throughout the firm.

Corporate
Corporate marketing objectives are typically broad-based in nature, and pertain to the general vision of the firm in the
short, medium or long-term.

As an example, if one pictures a group of companies (or a conglomerate), top management may state that sales for the
group should increase by 25% over a ten-year period.

Strategic business unit


A strategic business unit (SBU) is a subsidiary within a firm, which participates within a given market/industry. The SBU
would embrace the corporate strategy, and attune it to its own particular industry. For instance, an SBU may partake in
the sports goods industry. It thus would ascertain how it would attain additional sales of sports goods, in order to satisfy
the overall business strategy.

Functional
The functional level relates to departments within the SBUs, such as marketing, finance, HR, production, etc. The
functional level would adopt the SBU's strategy and determine how to accomplish the SBU's own objectives in its market.

To use the example of the sports goods industry again, the marketing department would draw up marketing plans,
strategies and communications to help the SBU achieve its marketing aims.

Product life cycle


The product life cycle (PLC) is a tool used by marketing managers to gauge the
progress of a product, especially relating to sales or revenue accrued over time.
The PLC is based on a few key assumptions, including:

A given product would possess introduction, growth, maturity, and decline


stage
No product lasts perpetually on the market
A firm must employ differing strategies, according to where a product is on
the PLC Product lifecycle

Introduction
In this stage, a product is launched onto the market. To stimulate growth of sales/revenue, use of advertising may be high,
in order to heighten awareness of the product in question.

Growth
The product's sales/revenue is increasing, which may stimulate more marketing communications to sustain sales. More
entrants enter into the market, to reap the apparent high profits that the industry is producing.

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Maturity
A product's sales start to level off, and an increasing number of entrants to a market produce price falls for the product.
Firms may use sales promotions to raise sales.

Decline
Demand for a good begins to taper off, and the firm may opt to discontinue manufacture of the product. This is so, if
revenue for the product comes from efficiency savings in production, over actual sales of a good/service. However, if a
product services a niche market, or is complementary to another product, it may continue manufacture of the product,
despite a low level of sales/revenue being accrued.

Customer focus
Many companies today have a customer focus (or market orientation). This implies that the company focuses its activities
and products on consumer demands. Generally there are three ways of doing this: the customer-driven approach, the
sense of identifying market changes and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is
pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the
product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for
this approach is that there is no point spending R&D funds developing products that people will not buy. History attests to
many products that were commercial failures in spite of being technological breakthroughs.[57]

A formal approach to this customer-focused marketing is known as SIVA[58] (Solution, Information, Value, Access). This
system is basically the four Ps renamed and reworded to provide a customer focus.

The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model
(product, price, place, promotion) of marketing management.

Product → Solution
Promotion → Information
Price → Value
Placement → Access

Product focus
In a product innovation approach, the company pursues product innovation, then tries to develop a market for the
product. Product innovation drives the process and marketing research is conducted primarily to ensure that profitable
market segment(s) exist for the innovation. The rationale is that customers may not know what options will be available to
them in the future so we should not expect them to tell us what they will buy in the future. However, marketers can
aggressively over-pursue product innovation and try to overcapitalize on a niche. When pursuing a product innovation
approach, marketers must ensure that they have a varied and multi-tiered approach to product innovation. It is claimed
that if Thomas Edison depended on marketing research he would have produced larger candles rather than inventing light
bulbs. Many firms, such as research and development focused companies, successfully focus on product innovation. Many
purists doubt whether this is really a form of marketing orientation at all, because of the ex post status of consumer
research. Some even question whether it is marketing.

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An emerging area of study and practice concerns internal marketing, or how employees are trained and managed to
deliver the brand in a way that positively impacts the acquisition and retention of customers (employer branding).
Diffusion of innovations research explores how and why people adopt new products, services and ideas.
A relatively new form of marketing uses the Internet and is called Internet marketing or more generally e-marketing,
affiliate marketing, desktop advertising or online marketing. It tries to perfect the segmentation strategy used in
traditional marketing. It targets its audience more precisely, and is sometimes called personalized marketing or one-
to-one marketing.
With consumers' eroding attention span and willingness to give time to advertising messages, marketers are turning
to forms of permission marketing such as branded content, custom media and reality marketing.
The use of herd behavior in marketing.

The Economist reported a recent conference in Rome on the subject of the simulation of
adaptive human behavior.[59] It shared mechanisms to increase impulse buying and get people
"to buy more by playing on the herd instinct." The basic idea is that people will buy more of
products that are seen to be popular, and several feedback mechanisms to get product
popularity information to consumers are mentioned, including smart-cart technology and the use
of Radio Frequency Identification Tag technology. A "swarm-moves" model was introduced by a
Florida Institute of Technology researcher, which is appealing to supermarkets because it can
"increase sales without the need to give people discounts."

Marketing is also used to promote business' products and is a great way to promote the business.

Other recent studies on the "power of social influence" include an "artificial music market in
which some 14,000 people downloaded previously unknown songs" (Columbia University, New
York); a Japanese chain of convenience stores which orders its products based on "sales data
from department stores and research companies;" a Massachusetts company exploiting
knowledge of social networking to improve sales; and online retailers who are increasingly
informing consumers about "which products are popular with like-minded consumers" (e.g.,
Amazon, eBay).

See also
Affinity marketing Macromarketing
Advertising Marketing mix
History of advertising Marketing Management
Sex in Advertising Marketing research
Advertising management Marketing strategy
American business history Micromarketing
Brand awareness Media manipulation
Co-marketing Multicultural marketing
Consumer confusion Product management
Consumer behaviour Production orientation
Database marketing Public Sector Marketing
Demand chain Real-time marketing
Digital marketing Relationship marketing
Email remarketing Smarketing
Family in advertising Societal marketing
History of marketing Sustainable market orientation
List of marketing terms Visual marketing
Loyalty marketing

Types of marketing
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Agricultural marketing Relationship marketing


Business marketing and industrial marketing Services marketing
Destination marketing Social marketing
Global marketing

Marketing orientations or philosophies


Marketing orientation Socially responsible marketing and corporate social
Production orientation responsibility
Selling orientation Relationship marketing and customer relationship
management

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External links
The dictionary definition of marketing at Wiktionary
Quotations related to marketing at Wikiquote
Marketing at Wikibooks

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